The proposed study attempts to investigate the interdependent relationship between regional employment growth and the growth in public health and educational expenditures by local government in the Standard Metropolitan Statistical Areas, 1960 and 1970. A simultaneous equation model will be developed to analyze the variations in the endogenous variables such as net migration, employment growth, growth in per capita public health and education expenditures, etc. A two-stage least squares method will be employed to estimate coefficients of all social, economic, health related and other variables specified in the model. The main objectives of this study are as follows: 1. To theoretically develop a regional growth model which takes into account the mutual influences of activities in both the public and private sectors. Special emphasis will be placed on factors affecting net migration, regional employment growth and health expenditure changes of local governments. 2. To make an empirical test on hypotheses specified in the model utilizing 1970 & 1960 census of population and other data officially published. 3. To measure the partial elasticity of the endogenous variables with respect to all strategic variables in order to forecast net migration, employment growth and local health and education expenditures among SMSAs in the future for urban plannings in housing development, health and educational programs.